This is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Monday, May 27, 2013
JOBST- trading at demanding valuation
Result Update
For QE31/3/2013, JOBST's net profit increased by 3% q-o-q or 48% y-o-y to RM15.4 million while revenue increased by 19% q-o-q or 14% y-o-y to RM43.2 million. Revenue increased q-o-q due to higher sales from online recruitment services due to seasonality factors. Pre-tax profit rose by 21.5% q-o-q mainly due to the impact of higher sales from online recruitment services, offset by the significant one-off item in the immediate preceding quarter (QE31/12/2012) such as the reversal of impairment loss on investment in an associate.
Table: JOBST's last 8 quarterly results
Chart 1: JOBST's last 28 quarterly results
Valuation
JOBST (closed at RM3.65 on May 23) is now trading at a PE of 18.3 times (based on last 4 quarters' EPS of 19.9 sen). At this multiple, JOBST is deemed fully valued.
Technical Outlook
JOBST had a sharp rally over the past 5 months. I expect the share price to consolidate at RM3.50-3.60 for a while.
Chart 2: JOBST's weekly chart as at Mar 23, 2013 (Source: Quickcharts)
Conclusion
Based on improved financial performance & positive technical outlook, JOBST is a good stock to hold for long-term investment. However, its valuation is a bit stretched and this may lead to price consolidation for the weeks ahead.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, JOBST.
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